While you can’t invest in a Solana ETF just yet, a major supporter of the cryptocurrency is predicting that could change as soon as 2025. This backer even suggests that a Solana ETF could outshine existing Ethereum-based products.

Kyle Samani of Multicoin Capital, who’s heavily invested in Solana (SOL) and related projects, has been openly advocating for the Securities and Exchange Commission (SEC) to approve a Solana ETF. Given his stake, his optimistic predictions might not be totally unexpected.

During a recent appearance at Blockworks’ Digital Asset Summit in New York City, Samani shared his reasoning for why he thinks Solana is more appealing to traditional investors than Ethereum was initially. The key, he explained, boils down to the money being generated on the blockchain – specifically, on-chain fees relative to the overall value of each asset.

Samani elaborated, saying, ‘A significant factor in the Ethereum ETF’s somewhat lukewarm reception was that many investors took a closer look at ETH and essentially asked, “Where are the fees?”‘

According to Samani, these investors didn’t find compelling evidence to justify investing in Ethereum at its then-current prices.

In traditional stock markets, investors often rely on a company’s price-to-earnings (P/E) ratio to gauge whether a stock is overvalued or undervalued and inform their investment decisions. While crypto doesn’t have such a straightforward metric, blockchains do generate revenue, and when combined with token valuations, a comparable concept can be derived.

Samani argues that Solana’s implied P/E ratio looks considerably more attractive to investors than Ethereum’s. He estimated, during his presentation, that Solana is trading at a P/E ratio of 30 to 50, while Ethereum’s is closer to a much higher 1,000.

Samani pointed out that Solana’s P/E ratio is ‘much more comparable to high-growth tech stocks,’ making it potentially more appealing to investors who are familiar with those types of valuations.

If this logic resonates with traditional investors, it could lead them to believe that Solana offers more significant potential upside compared to Ethereum and potentially allocate their investments accordingly.